Swedish energy company Vattenfall’s underlying earnings from wind power fell to Skr900m last year, from Skr1.5bn the previous year.
The company said the reasons for the drop were “lower net sales from existing assets combined with higher depreciation and higher OPEX”.
Wind generation in 2016 was the same as in 2015 at 5.8TWh, with less favourable wind conditions during the year offset by the commissioning of new projects.
Vattenfall said it had achieved a “significant…strengthening” of its wind pipeline in the year.
It won tenders for the 350MW Vesterhav North and South nearshore projects and the 600MW Kriegers Flak wind farm off Denmark, while construction started at the 400MW Horns Rev 3 project and a final investment decision was made for 92.4MW Aberdeen Bay offshore project in the UK.
The company said it commissioned 297MW of new renewables capacity in 2016, which was down from 375MW in 2015.
Hydro power generation was also down last year at 34.8TWh, compared with 39.5TWh the previous year.
The drop was the result of lower reservoir levels. Nordic reservoir levels stood at 52% of capacity at the end of the year, which was five percentage points lower than normal, Vattenfall said.
Overall, the company reported a loss of Skr2.17bn in 2016.
Vattenfall chief executive Magnus Hall said: “Despite a number of positive developments, the electricity business situation remains tough with low prices and continued over capacity.
“The entire electricity sector is under price pressure which resulted in significant impairment losses.”
Image: Vattenfall
